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Committee amends subscription bill to delay implementation date and tighten long-term renewal consent
Summary
The committee considered LC550558S, a substitute that would require sellers to offer upfront opt-outs for automatic renewals and to secure affirmative consent for long-term renewals and certain price increases. Members voted to amend the substitute to push the effective date to Dec. 30, 2025.
The House Agriculture & Consumer Affairs Committee took up a substitute (LC550558S) aimed at curbing surprise price increases in automatically renewing consumer contracts.
Sponsor Representative Barrett said the substitute would give consumers an option at the time of initial sale to decline automatic renewal, require affirmative consent for renewals that extend contracts 12 months or longer, and require consumers to acknowledge certain price increases rather than simply be notified.
The substitute narrows the existing statute that currently requires affirmative consent for contracts automatically renewing for more than 24 months; the proposal lowers that threshold to renewals of 12 months or more. The sponsor also said the committee could delete or modify the provision that would require affirmative consent for price increases if members preferred a lighter standard.
Committee members raised implementation questions for out-of-state vendors and the practicality of immediate effective dates. Representative Tyler asked how out-of-state companies would learn of the new law; members agreed delaying the effective date would give businesses time to comply.
Representative Taylor moved to amend the substitute to set the implementation deadline to Dec. 30, 2025; the motion was seconded and the amendment was adopted. Members also discussed whether price increases on shorter-term subscriptions should require affirmative consent; the sponsor said that language could be amended either way and that legislative council could prepare the technical change.
The committee did not complete further floor action on the substitute in this hearing; members said they expect further amendments and a return to committee to finalize language.
